Acc – p 11-15 p11-6 assignment week-5

P 11-15 Property, plant, and equipment and intangible assets; comprehensive

The Thompson Corporation, manufacturer of steel products, began operations on October 1, 2009.  The accounting department of Thompson has started the fixed- asset and depreciation schedule presented below.  You have been asked to assist in completing this schedule.  In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel:

a.       Depreciation is computed from the first of the month acquisition to the first of the month of disposition.

b.      Land A and Building A were acquired from a predecessor corporation. Thompson paid 812,000 for the land and building together.  At the time of acquisition, the land had a fair value of 72,000 and the building had a fair value of 828,000.

c.       Land b was acquired on October 2, 2009, in exchange for 3,000 newly issued shares of Thompson’s common stock.  At the date of acquisition, the stock had a par value of $5 per share and a fair value of $25 per share.  During October 2009, Thompson paid $10,400 to demolish an existing building on this land so it could construct a new building.

d.      Construction of Building B on the newly acquired land began on October 1, 2010.  By September 30, 2011, Thompson had paid $210,000 of the estimated total construction costs of $300,000.  Estimated completion and occupancy are July 2012.

e.       E. Certain equipment was donated to the corporation by the city.  An independent appraisal of the equipment when donated placed the fair value of $16,000 and the residual value at $2,000.

f.       Machine A’s total cost of $110,000 includes installation charges of $550 and normal repairs and maintenance of $11,000. Residual value is estimated at 5,500.  Machine A was sold on February 1, 2011.

g.      On October 1, 2010, Machine B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2011.  The prevailing interest rate was 8% .


Fixed Asset and Depreciation Schedule








For Fiscal Years Ended September 30, 2010 and September 30, 2011






















Depreciation for








Year Ended 9/30



Acquisition Date



Depreciation Method

Estimated Life in Years



Land A








Building A








Land B








Building B

under construction

210,000 to date




Donated Equipment




150% declining balance




Machine A








Machine B
















N/A= Not Applicable









Required:Supply the correct amount for each numbered item on the schedule.  Round each answer to the nearest dollar. (AICPA adapted)



P11-6 Depreciation methods: partial-year depreciation; sale of assets

On March 31, 2011, the Herzog Company purchased a factory complete with machinery and equipment.  The allocation of the total purchase price of $1,000,000 to the various types of assets along with estimated useful lives and residual values are as follows:



Estimated Residual Value

Estimated Useful Life in Years











10% of cost











On June 28, 2012, machinery included in the March 31, 2011, purchase that cos $100,000 was sold for $80,000. Herzog uses the straight-line depreciation method for buildings and machinery and the sum-of-the-years’-digits method for equipment.  Partial-year depreciation is calculated based on the number of months an asset is in service.


1.      Compare depreciation expense on the building, machinery, and equipment for 2011.

2.      Prepare journal entries to record (1) depreciation on the machinery sold on June 29, 2012, and (2) the sale of machinery.

3.      Compute depreciation expense on the building, remaining machinery, and equipment for 2012.

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.


Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.


Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?


Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.


Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.


Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !


Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.